CBN revokes 46 microfinance banks' licences, warns depositors may lose funds
CBN revoked the operating licences of 46 microfinance banks on July 1, 2026, including Credit Ville and Sycamore Microfinance Banks, citing regulatory non‑compliance. The Nigeria Deposit Insurance Corporation immediately took over the failed lenders to begin the liquidation process. Speaking with DAILY POST, Bank Customers’ Association President Dr Uju Ogunbunka warned that depositors will only recover the insured portion of their funds; any amount above the insurance limit will be paid only after all creditors are settled, and there is no guarantee of full recovery. He said affected customers will have their money tied up until NDIC starts payments, forcing them to seek alternative banks for daily transactions and businesses to lose access to credit lines. Employees of the collapsed microfinance banks face job losses, which could worsen insecurity as unemployed individuals turn to informal means of survival. Ogunbunka urged NDIC to speed up repayments and advised customers with nearby banks to open new accounts, while noting that those in rural areas may face longer waits for alternative services. He warned that the shock could erode years of financial‑inclusion gains, making both current and prospective users wary of the formal banking system.